Interest rate increased further, while CBSL managed to raised all the funds to repay the liabilities

Sri Lanka T-bills yields are rising at a rapid phase especially on 91Days. CBSL has allowed the T-bill price to fell free float as yields climbed to 8.39%, 8.16% & 8.17%. After 13 auctions CBSL has been successful in raising all the funds that need to settle the liabilities on Friday. CBSL has allowed to increased the 91Days T-bills by 3% after the last rate hike. This strategy would force institutional investors to reconsider their strategy of borrowing short-term in LKR terms to finance domestic expanse while keeping FX earning without repatriation.